Commercial and Non-Profit Organizations

What are commercial and non-profit organizations?

Commercial and non-commercial organizations, in fact, are legal entities, thus subdivided, depending on the purpose of the creation. The first purpose is to profit from commercial activities and distribute it among the participants of the enterprise. The latter can also engage in entrepreneurship, but the profit in this case is spent on the purposes for which the legal entity was created and therefore can not be distributed among its participants.

Activities of non-profit organizations are usually aimed at achieving social, educational, charitable, scientific and cultural goals, developing sports and meeting other needs of citizens.

Commercial and non-profit organizations. Forms.

The list of forms (kinds) of organizations of commercial orientation is exhaustive and fixed in the Civil Code of Russia. They include:

- economic partnerships and societies. Represent commercial organizations, the authorized capital of which is divided into contributions of participants.

Economic partnerships are created in the forms of a full partnership, as well as partnerships on faith. Members of the partnership have the right to participate in the activities of the organization. The profit is divided proportionally to the shares. All participants in the general partnership are equal. They risk their property. A partnership in the faith is understood as a partnership in which, apart from participants engaged in activities aimed at obtaining profits on behalf of the partnership that are responsible for the obligations of the partnership with their own property, there is at least one that risks property, within the amount of the contribution and does not participate in the implementation of business .

Business associations function in the forms of JSCs, LLCs, ODOs.

AO is a society in which the authorized capital consists of a certain number of shares. Participants in the obligations of the enterprise do not meet, and the risk of losses does not exceed the limit of the value of shares. AO can be closed and open type. In the event that the circle of persons to whom shares can be sold is determined in advance, the company is considered closed. Otherwise - open.

LLC is a society in which the authorized capital is divided into shares, which are determined by the documents of the constituent nature. Members of LLC for the obligations of the enterprise do not meet and risk only the contributions made.

ODO is a company in which participants for the obligations of the enterprise meet their property in a multiple of the value of deposits.

- state unitary municipal enterprises;

A unitary enterprise is a commercial organization that does not have ownership rights to a property that is indivisible and that is in municipal or state ownership.

- production cooperatives.

Production cooperatives are commercial organizations that are associations of citizens on a voluntary basis, functioning for the purpose of joint production and other economic activities on the basis of membership. The property is formed at the expense of shares of members of the cooperative.

The list of non-profit organizations can be supplemented. Non-commercial organizations are created in the form of: religious and public associations and organizations, consumer cooperatives, institutions, non-commercial partnerships, autonomous non-profit organizations, associations and unions, foundations,

The activities of non-profit organizations are limited to the constituent documents (charter and constituent agreement), directly in them is prescribed and can not go beyond.

Commercial and non-profit organizations are considered to have been created since the state. Registration. At the same time, non-profit organizations function without limitation of the terms of activity and subsequent re-registration is not required.